Notice Under Section 17E(3) of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 – Viva Energy Australia Pty Ltd (Expiry 31 August 2025)

Overview

The Fuel Quality Standards Act 2000 was enacted to establish and enforce standards for the quality of liquid fuels sold or supplied in Australia. The Act aims to protect the environment, safeguard occupational and public health and safety, and support economic and regional development. The legislation was introduced to address the need for stringent quality controls in the supply of liquid fuels, ensuring that fuels meet certain environmental and safety standards. The policy objective of the Act is to reduce the environmental impact of liquid fuel use, improve public health, and support the transition to cleaner energy sources. The Fuel Quality Standards (Automotive Diesel) Determination 2019 was made under the authority of the Act, setting out specific quality standards for automotive diesel. Recently, a variation was introduced to this determination concerning Viva Energy Australia Pty Ltd, extending the period of approval for the supply of renewable diesel until 31 August 2025. This variation also includes additional regulated persons to the original approval, aiming to facilitate a broader trial of renewable diesel, which is expected to contribute to lower greenhouse gas emissions and support the nation's commitment to reducing emissions by 43 per cent below 2005 levels by 2030.

Scope and Application

The notice under section 17E(3) of the Fuel Quality Standards Act 2000 made by Paula Svarcas, the Head of the Gas and Liquid Fuels Division, pertains to the variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 for Viva Energy Australia Pty Ltd. This variation extends the period of approval for the supply of renewable diesel until 31 August 2025 and incorporates additional regulated persons into the approval, specifically Cleanaway Waste Management Limited, Cleanaway Solid Waste Pty Ltd, Cleanaway Pty Ltd, and Cleanaway Operations Pty Ltd. The variation comes into effect from 13 November 2023 and remains in force until 31 August 2025. The decision was made after consulting with the Fuel Standards Consultative Committee, and the reasons for the approval revolve around environmental protection, the safeguarding of occupational and public health and safety, consumer interests, and the impact on economic and regional development. The added regulated persons are not expected to significantly alter the environmental impact, health and safety risks, or consumer interests, and their inclusion is aimed at providing businesses with an opportunity to trial a key decarbonisation tool, supporting the national commitment to reduce greenhouse gas emissions.

Key Provisions

The main operative sections of this notice are sections 13, 15, 17E, and 24A of the Fuel Quality Standards Act 2000 (the Act). Section 13 of the Act provides the authority for the Head of Division to amend an existing approval, while section 15 sets out the criteria that must be satisfied for such an approval to be granted. Section 17E deals with the variation of an approval, allowing for changes to be made to the conditions of the approval or the period of its effect, and section 24A requires consultation with the Fuel Standards Consultative Committee before such variations are made. Pursuant to section 17E(3) of the Act, the Head of Division has varied the period of effect of an existing approval in respect of Viva Energy Australia Pty Ltd’s supply of renewable diesel until 31 August 2025. The variation also adds four regulated persons to the approval: Cleanaway Waste Management Limited, Cleanaway Solid Waste Pty Ltd, Cleanaway Pty Ltd, and Cleanaway Operations Pty Ltd. These changes come into force from 13 November 2023. The Act imposes certain obligations on Viva Energy Australia Pty Ltd and the regulated persons added to the approval. Viva Energy Australia Pty Ltd must ensure that the renewable diesel supplied under the approval meets the conditions set out in the approval, including any conditions related to the protection of the environment, occupational and public health and safety, the interests of consumers, and the impact on economic and regional development. The regulated persons added to the approval must also comply with any conditions that apply to the approval, including any conditions related to the supply of renewable diesel. The Act also requires Viva Energy Australia Pty Ltd to provide the Department of Climate Change, Energy, the Environment and Water with any information or reports that are required under the approval. Breaches of the Act or the conditions of the approval may result in civil or criminal penalties. Under section 47 of the Act, a person who contravenes a condition of an approval is liable to a penalty of up to $22,200 for a corporation and $4,440 for an individual. In addition, under section 50 of the Act, a person who is found guilty of an offence against the Act is liable to a fine of up to $1,110,000 for a corporation and $222,000 for an individual. The Act also provides for the imposition of injunctions, orders for the recall or destruction of non-compliant products, and other remedies in the case of non-compliance.